Sound real estate ventures turn investors’ heads

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Projects with good planning, complete infrastructure, convenient transport and transparent legal procedures are now being hunted by investors amid a dormant property market.

For instance, Binh Duong-based An Cu Lac Nghiep Joint Stock Company sold out more than 80 from a total 100 land plots on offer at the IJC Commercial Town in the province’s Ben Cat district.

The IJC occupies a premier location in the province and lies on National Highway 13 which is the province’s arterial road, next to My Phuoc urban area and just three kilometres from new Binh Duong city.

In Hanoi, residential housings and terraced houses with complete infrastructure nearby beltway 3 such as Garden City, EcoPark and Times City are now customers’ first choices.

Relative to the property market ‘new movement’, National Financial Supervisory Committee deputy chairman Dr. Le Xuan Nghia assumed the birth of governmental Decree 69/2009/ND-CP dated August 13, 2009 providing additional regulations on land use planning, land prices, land recovery, compensation, support and resettlement made land acquisitions more costly and time consuming. Therefore, investors had regained their appetite for good property opportunities.

Tough business conditions made scores of property projects suffer delays or changes in usage functions which resulted in dwindling supply.

“Besides, Decree 71/2010/ND-CP of June 23, 2010 guiding the Law on Residential Housing enforcement made mobilising capital for property projects more difficult,” Nghia said.

Deputy Construction Minister Nguyen Tran Nam assumed the property market would be undersupplied in the near and medium term, so that the customers hoped the price of good properties would rebound when the economy was resurrected.

According to VinaCapital deputy general director David Blackhall, property supply was not as plentiful as expected as scores of developers faced capital distress and could not ensure project progress.

“Just 50 per cent of the 100,000 apartments slated to come onto market in the upcoming period can be built,” he said.